The Israel Consumer Council calls for an immediate reduction in the price of gasoline, by reducing and limiting taxes collected on it.
The recent increase in the price of gasoline has increased the State’s income from fuel taxes beyond expected levels. Today, consumers at the self-service pump are paying a price for 95-octane fuel that is 23% higher than the average price per liter paid over the past three years.
36% of this increase in the price of gasoline is the result of increases in taxes on fuel. This situation, in which the State’s income from fuel taxes increases as a result of increases in world prices for oil, is unreasonable. In the view of the Consumer Council, a limit should be placed on the amount of tax collected on gasoline.
It should be remembered that increases in the price of gas have an influence not only on drivers, but on the whole of the economy, with increases in gas prices leading to other price rises.
The Consumer Council believes that taxes on gas should be limited, by setting a maximum tax level, calculated on the basis of the average tax collected on gasoline over the previous three years. Based on this approach, the price of gas could be reduced by 51 agorot per liter. Implementation of this approach would reduce household expenditures by hundreds of shekels each year, but would not affect the planned State income from taxes on fuel.
Consumer Council CEO, Adv. Ehud Peleg, says that the Treasury rejected this proposal on the grounds that it was populistic. However, they have no logical explanation as to why, on the other hand, it is fair for the State to receive income significantly in excess of expectations.
To the artical in "The Marker" press here